Anthropic blocks distillation: it was 5-7% of revenue, tens of thousands of accounts banned

FinanceYF5 · x · 2026-10-26

On Oct 12, Anthropic said its new anti-distillation defenses cut data distilled from Claude by 90-99% and led to tens of thousands of banned accounts. Per FT sources, distillation once accounted for 5-7% of Anthropic's revenue — revenue it chose to forgo. The Chinese-language thread argues AI companies' moat is shifting from raw model strength to "how models think": blocking distillation won't stop rivals chasing benchmarks, but makes catching up slower and costlier.

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